The pandemic has challenged small business owners in far too many ways. It’s not easy for many employees to juggle family responsibility, cash flow strain, job uncertainty, and more on top of the health concerns that come with a pandemic. We’re seeing more and more Canadians choosing not to return to work, or moving on to different opportunities as a result. A hiring crisis is real for so many businesses and organizations as demand for services increases. To top it all off, the employees still working are working longer days — approximately 49 minutes longer in fact — to make up for short-staffing. The Employee Benefits Plan needs to be looked at differently in 2022 as a result of the pandemic and changes to the way Canadians work. Or, if you’re not offering a plan yet, perhaps 2022 is the time to consider it.
So how can you attract and reward talented team members in a fiscally responsible way?
Before anything, check your cash flow and revenue/expense projections. Talk to your financial team to see if and what amount you may be able to invest in your team — and for the long-term! You don’t want to start and stop an employee benefit program.
Once you’re confident in the numbers and have a budget in mind, explore which route would be best for your team members. This is best accomplished by surveying your team — either anonymously, or informally. See where their concerns lie, and what would be the best reward for them. You’ll never satisfy everyone, but it’ll provide you with some direction.
Explore Your Options
Group Retirement Plan: this is a contributory group retirement (RRSP) plan where a designated percentage of an employee’s paycheque is contributed to their group RRSP plan, with a matched percentage by the employer. You can provide an opportunity for your team members to save for retirement, and keep within your budget by controlling the maximum amount you as an employer will match.
Employee Development: it’s a no-brainer to provide training as needed for your team members to do their job successfully, but are you offering any additional development opportunities? This may include leadership or personal development, personal financial education (empower them with a team money talk group led by a financial professional), a team fitness or yoga class. Some of these may not cost you much (if at all), but can be rewarding team-building activities that are appreciated by all.
Employer Health Plan: as small business owners, an employer-sponsored health plan can be daunting. Increases in costs beyond your control can make it difficult to continuously offer the plan your employees want most. Some employers think they’re too small to get into a plan that actually works for them. Flip the script and consider a Health & Wellness Spending Account for your employees. You can designate a budgeted amount for each year that your employees can use with flexibility toward the expenses that they need for themselves and their family. Setting the annual amount for your employees also provides you with an exact budget each year to continuously provide this type of plan for your employees. This is an incredible addition if you find your employees have a partner/spouse with a robust group plan already. This can cover those deductibles or any expenses beyond the limits of the other plan.
Pro Tips: Don’t try to be everything to everyone, and don’t dismiss the value in small rewards consistently throughout the year. Get creative!
The Recap: How to look into adding benefits in 2022
- check your company cash flow and determine the maximum annual investment available
- survey your team members to see what they value or struggle with most
- decide on the best option to implement –> I can help with all three options above, just ask me!